The Fed meets today and tomorrow. It will announce its official policy change, if any, tomorrow at 2PM EST. The markets strongly believe that the Fed will cut rates by at least 0.25%.
This is why stocks have rallied nine straight sessions. The markets are now EXTREMELY overbought and exposed to a correction of sorts in a “buy the rumor, sell the news” type event. But the big picture remains the same:
The Great Global Melt-up is underway.
As I noted yesterday, central banks have begun the next coordinated easing cycle. Indeed, the Fed was the last holdout as far as rate cuts were concerned, having been on “pause” since December 2024.
Not anymore.
The Fed, the European Central Bank (the ECB), the Bank of England (BoE), the Swiss National Bank (SNB), the Bank of Canada, all of them are actively cutting rates.
This monetary easing is only going to accelerate.
Globally, the bond market is beginning to crack. And central banks will soon be forced to print money and start buying debt (Quantitative Easing or QE … or risk a debt crisis.
The yield on the UK’s 10-year Government Bond is at levels not seen since 2008. A break above 4.75% opens the door to a yield spike to new highs, which with a debt to GDP ratio of 96% is a recipe for a debt crisis.
The situation is even worse in Japan. There the yield on 10-Year Japan Government bonds is going vertical. If the Bank of Japan (BoJ) doesn’t act soon Japan will soon enter a debt crisis (Japan has a debt to GDP of over 200%).
Put simply, there is only one path forward for central banks: print money and use it to buy bonds or risk losing control of the bond market completely.
This is why stocks, bitcoin, gold and other assets are all skyrocketing to new all-time highs, they are discounting another round of money printing from central banks.
This is the Great Global Melt up: the process in which trillions of dollars in capital flees cash for risk assets.
You NEED to act now to profit from this. Because when this melt up ends, the great debt crisis of our lifetime will begin.
On that note, we just published a Special Investment Report concerning THREE investments poised to produce extraordinary gains during the Great Global Melt Up. And they’re already erupting higher!
Normally I’d charge $499 for this report as a standalone item, but we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research